CR 88-129 Engineer's Report - Parking Ramp
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'- June 28t 1988 li} Council Report: 88-129
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ENGINEER'S REPORT - PARKING RAMP
ProJ;>osed. Act.ion.
Staff recommends the following motion: Move that Resolution No: 88-60.
R~solution Acceptinq ~nqineerJs Report & Calling for Public Hearinq be
adopted.
This action will continue the process of assessing part of the costs
for the parking ramp as per agreement with Lexington Development
Company.
Overview.
The City has an agreement with Lexington Company, owner of the Norwest.
Bank building, for cost sharing of the parking ramp. That agreement
states in part that a certain amount of the capital costs and a,n
additional amount for the maintenance of the ramp should be assessed
to the Norwest Bank property and sets the terms for that assessment.
PrimarY Issues to Consider.
0 Is the public hearing necessary?
ilt The City Attorney advises that this is the proper
procedure to follow.
0 Should the hearing be held at this time?
If the project is to be assessed in 1988 as per -
aqreement, it is necessary to have this hearinq as soon
as possible. The hearinq is to be held August 2, 1988.
SUDDort.ing Infor.mation~
o Copy of aqreem.ent
o Memo from City Attorney
o Resolut1.on No: 88-60
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correction of title, the payments hereunder required shall be postponed, but upon
correction oC title, and within ten (10) days after written notice, the City shall
perform 85 provide.d in this Agre~ment. [f said title is not marketable and IS not
made so within three (3) months (rom the date of written objections thereto as
above provided, the City's sole remedies hereunder shall be to either:
(a) terminate this Agreement by giving written notice by
registered mail to the Company, in which event this Agreement shall
become null and void and neither party shall be liable for damages hereunder
to the other party and moneys paid by the City hereunder, if any, shall be
reCunded; or
(b) elect to accept title in its unmarketable condition by giving
written notice by registered mail to the Company, in which event the
warran~y deed to be delivered at Closing shall except such Objections.
Section 1. Construction of Parking- Ramp. The City agrees that it will
construct the Parking Ramp on the Parking Property, provided that its obligations
hereunder are subject to the express conditions that (i.) the total development cost
of the Parking Ramp shall not exceed $2,139,500, and (ii) it has issued the Bonds
upon acceptable terms and in an amount sufficient to pay such costs. The City
shall advise the Company. not later than June 8, 1988 whether- the conditions set
. forth in (i) and (ii) have been satisfied. (n the event the conditions have not been
satisfied or waived by such date, the Company shall have the optiort to terminate
this Agreement.
I Section 8. Company's Rilrttt to Parking Permits. The Company shall have-
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the exc:lusive right to use 120 parking spaces within tbe Parking Ramp during the
Term o( this Agreement in consideration of its agreements and obligations
hereunder, including its conveyance of the Company Property without monetary
co mpeasat ion. [n addition, the Company may purchase additional parking permits
on the same basis as members of the general public. Upon expiration of this
Agreement, the Company shall have a first right to purchase 120 parking permits
at the permit cost in effect at such time.
Section 9. Company to Pa'{ Portion of Development Cost. The Company
hereby acknowledges that the construction of the Parking Ramfj and the
availability of 79 spaces therein shaU be a benefit. to the Office Property and
agrees rtot to contest or challenge in any manner an assessment against the Office
Property in an amount equal to $391.998 as consideration therefor, such assessment
to be spread over 15 years commencing in 1989, .unpaid installments to bear
interest at the rate of 7.6% :>er annum. The amount of each annual installment
shall be $U,812.
Section 10. . O~ration and Maintenance; Payment o( Expenses. The City
shall OpErate and maintain the P8.rkin~ Ramp. The City shall annually during the
term of this A~ement levy an assessment against the Office Property to cover
the Cityls expenses of operation and maintenance in an amount equal to $12,000 in
. the first year of operation, increasing by 596 per year in each year thereafter,
compounded annually. [n the event the City's actual. expenses incurred attrib.utable
on a pro rata basis to the 120 stalls (or such lesser number of stalls as may be
available to the Company after damage or condemnation) used by th~ Company,
including" allocable portions o( salary or City employees and overhead and
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C I T Y 0 F H 0 P K , N S
MEMO
Date: June 8, 1988
To: Gordy Anderson
From: Jerre Miller
Re: Assessment Procedure
I have researched M. s. 429.011 et seq. pursuant to your
. inquiry of whether the shortened assessment procedure
outlined in M. s. 429.031, Subd. 3 can be fol~owed with
regard to the proposed assessment for the parking ramp agreed
to by Norwest Properties, Inc.
Subdivision 3 says whenever all the owners of real property
petition for an ~provement and agree to be assessed for the
entire cost, the Council may avoid a public hearing by
adopting a resplution to that effect and ordering in the
improvement.
M. s. 429 does not include parking lots or parking ramps as
authorized improvements.
Because the amount we are dealing with is sizable and the
City's time table will not be impaired by adhering to the
regular assessment procedur I recommend its provisions be
followed in this instance.
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1010 First Street South, Hopkins, Minnesota 55343 612/935-8474
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. CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. ea-60
A RESOLUTION RECEIVING REPORT AND
CALLING FOR HEARING ON IMPROVEMENTS
WHEREAS, pursuant to Resolution No. 88-51 of the
Council adopted June 21, 1988, a report has been prepared by
Gordon Anderson, Oirector of Engineering, with reference to
the improvement of Block 6, West Minneapolis by the
construction of a parking ramp thereon and this report was
received by the Council on July 5, 198B.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
. HOPKINS, MIliNESOTA, as follows:
1. The Council will consider the improvement of such
parking ramp in accordance with the report and the
assessment of Lots 14, 15 and 16, Block 6, West Minneapolis,
als.,,) Lots l8 through 22 inclusive said Block 6 and the South
l5 feet of Lot 23 said Block 6 including the adjoining 1/2
of the vacated alley; and Lot 17 including 1/2 vacated
alley, Block 6, West Minneapolis, for all or a portion of
the cost of the improvement pursuant to M.S.A., Sees.
429.011 to Secs. 429.111, as amended, at an estimated total
cost of the improvement of $391,998; and will further
consider the market value before and after said improvement,
of the property affected thereby.
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. 2. A public hearing shall be held on such proposed
improvement on the 2nd day of August, 198a in the Council
Chambers of the City Hall at 7:30 o'clock P,M., and the
Clerk sha.ll give published noticra of such hearing and
improvement as required by law.
Adopted by the Council of the city of Hopkins,
Minnesota, this 5th day of July, 1988.
James A. Genellie DONALD J. HILBERT,
City Clerk Mayor
JERRE A. MILLER,
City Attorney
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